Massachusetts-based Norfolk & Dedham (N&D) and Union Mutual in Vermont, property/casualty insurers with a combined 350 years in the business in the Northeast, announced they intend to affiliate, subject to regulatory approval.

The combined group will write personal and commercial lines business in eight states with approximately $596 million in direct written premium and over $580 million in policyholder surplus.

The group will have approximately 250 employees and 600 independent agents with 1,000 agency offices across the Northeast.

Each company will continue to market products under its existing brands in each of their respective marketplaces.

N&D will maintain its headquarters in Dedham, Massachusetts, while Union Mutual will keep its headquarters in Montpelier, Vermont.

The members of Norfolk & Dedham are Norfolk and Dedham Mutual Fire Insurance Co., Fitchburg Mutual Insurance Co. and Dorchester Mutual Insurance Co.

The members of Union Mutual are Union Mutual Fire Insurance Co., New England Guaranty Insurance Co. Inc. and Community Mutual Insurance Co.

Both companies are rated A (Excellent) with a Stable outlook by AM Best. AM Best has commented that the credit ratings of both remain unchanged following the announcement.

Under the affiliation agreement, Joel Murray will remain president and CEO of Norfolk & Dedham and Lisa Keysar will remain president and CEO of Union Mutual. Murray will serve as board chairman of the combined group.

Norfolk & Dedham and Union Mutual said they are planning to participate in an intercompany pooling agreement effective Jan. 1, 2025, under which premiums, losses and expenses are combined and pro-rated, with participation percentages based on the individual members’ policyholder surplus.

“Both of our organizations bring to this affiliation financial strength, local market expertise and exceptional service in our respective markets,” said N&D’s Murray.

“The opportunity to grow through affiliation between two companies that share similar culture and principles is exciting. We look forward to building upon our successful historical results to come together to enable strategic pursuits and innovation,” said Union Mutual’s Keysar.